Wall Street Records Losses After Trump's North Korea Warning

Wall Street Records Losses After Trump's North Korea Warning

Wall Street Records Losses After Trump's North Korea Warning

Geopolitical tensions were at the fore, after US President Donald Trump said North Korea would be "met with fire and fury" if its threats against America continued. The euro is down 0.1 percent at $1.1738.

All three major equity benchmarks finished sharply lower on Thursday for their worst day since mid-May, with the trifecta of indexes all tumbling for a third straight session for the first time since mid-April, amid a persistent war of words between the US and North Korea.

The Swiss franc gave up some gains (http://www.marketwatch.com/story/swiss-franc-gives-up-some-gains-as-investors-monitor-us-north-korea-standoff-2017-08-10), as the USA dollar was flat across the board.

ANALYST'S TAKE: "The tensions between North Korea and the U.S.is an excuse for profit-taking", Seo Sang Young, an analyst at Kiwoom Securities.

A spokesman for the Korean People's Army said in a statement on Wednesday it was "carefully examining" plans for a missile attack on the U.S. Pacific territory of Guam, which has a large U.S. military base.

On Thursday the greenback had shed 0.8 percent versus the yen, with the Japanese currency rallying broadly against most major currencies.

The CBOE Volatility Index .VIX , better known as the VIX and the most widely-followed barometer of expected near-term stock market volatility, closed at 10.96, its highest in about a month.

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However, the town has become a focal point for white nationalists after the city council voted to remove a statue of General Lee. President - we must call evil by its name". "@POTUS needs to speak out against the poisonous resurgence of white supremacy".

Escalating tensions around Pyongyang's nuclear ambitions sent a shiver through markets worldwide and pushed the dollar to below 109.7 yen in afternoon forex trade to an eight-week low against the safe haven currency, piling more pressure on Japanese stocks. While the French CAC 40 Index fell by 0.6 percent, the German DAX Index slumped by 1.1 percent and the U.K.'s FTSE 100 Index plunged by 1.4 percent.

Although Japan could be in the front line of any clash with North Korea, the yen is benefitting because Japan is the world's biggest creditor nation and Japanese investors tend to repatriate funds in times of stress, attracting other flows. The euro slid to $1.1752 from $1.1793.

Sterling was last trading at $1.2998, up 0.07 percent on the day. U.S. Treasury yields fell in Asian time and the 10-year benchmark yield is down 2.7 basis points at 2.26 percent. China's yuan firmed 0.3 percent against the dollar in a third straight day of gains to hit its firmest level in 10-months on the back of a stronger fixing and continued corporate dollar selling, while data shows inflation holding steady.

U.S. crude oil settled 0.4% lower at $49.17/bbl, as the U.S. Energy Information Administration said it forecasts U.S. crude production to average 9.9M bbl/day in 2018, the highest annual average production on record.

The Australian dollar, which rose to a 19-month high near 90.00 yen late in July, was down 0.6 percent at 86.77 yen after slipping to a one-month low of 86.23 yen. Brent crude was up 30 cents at $53.00 a barrel. TMX Group Ltd was up 3.2 percent to C$68.02, while Quebecor Inc added 4.3 percent to C$45.20 and Canadian Tire Corp Ltd climbed 5.7 percent to C$149.89.

Gold fell $2.10 to $1,262.60 an ounce.

The tech-laden Nasdaq Composite Index plummeted 135.46 points, or 2.1%, to close at 6,216.87.

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